International operations and sustainable development: Should national culture matter?

Abstract

Abstract As manufacturers around the world have seen an increasing number of opportunities to produce abroad and to source from low cost regions, they also have had to address growing pressure from non‐governmental organizations, consumer groups and even the population in general regarding sustainable development. This paper examines the conjuncture of these two trends by assessing the linkage between national culture and corporate sustainable development practices in 55 countries. The results suggest that two of Hofstede's national culture dimensions are linked to a higher degree of sustainable practices by corporations. In particular, a nation's high degree of individualism and uncertainty avoidance were both related to green corporatism, environmental innovation, fair labor practices and corporate social involvement. The results provide managers with another tool in making decisions about offshoring, global sourcing and international production expansion. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.

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